outside the US) and $625 million of pretax credits in 2010 ($222 million of net charges in the US and $847 million of
net credits outside the US). These charges and credits are included in the table above and are more fully described in
Note 3 –
Charges and Credits
.
The components of net deferred tax assets (liabilities) were as follows:
(Stated in millions)
2012
2011
Postretirement benefits
$ 543
$ 440
Intangible assets
(1,490)
(1,498)
Investments in non-US subsidiaries
(317)
(349)
Other, net
114
132
$(1,150)
$(1,275)
The above deferred tax balances at December 31, 2012 and 2011 were net of valuation allowances relating to net
operating losses in certain countries of $256 million and $239 million, respectively.
The components of
Taxes on income
were as follows:
(Stated in millions)
2012
2011 2010
Current:
United States – Federal
$ 698
$ 809 $ 89
United States – State
53
42
14
Outside United States
1,048
684
906
$1,799
$1,535 $1,009
Deferred:
United States – Federal
$ (105)
$ (73) $ 161
United States – State
(7)
(7)
2
Outside United States
22
75 (280)
Valuation allowance
14
(21)
(13)
$ (76)
$ (26) $ (130)
Consolidated taxes on income
$1,723
$1,509 $ 879
A reconciliation of the United States statutory federal tax rate (35%) to the consolidated effective tax rate is:
2012
2011 2010
US statutory federal rate
35%
35% 35%
Non-US income taxed at different rates
(10)
(10) (14)
Charges and credit (See Note 3)
–
– (3)
Other
(1)
(1) (1)
Effective income tax rate
24%
24% 17%
Schlumberger conducts business in more than 100 tax jurisdictions, a number of which have tax laws that are not
fully defined and are evolving. Schlumberger’s tax filings are subject to regular audit by the tax authorities. Tax
liabilities are recorded based on estimates of additional taxes which will be due upon the conclusion of these audits.
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